On 24 March 2011 the Government announced changes to the income tax law to extend the immediate deductibility of exploration expenditure provided to mining and petroleum explorers to geothermal energy explorers.
Exposure draft legislation and explanatory material for the proposed amendments is attached.
The proposed amendments to the Income Tax Assessment Act 1997 are designed to allow geothermal energy explorers to deduct immediately the cost of the tangible and intangible depreciating assets they acquire if they first use the assets for exploration and prospecting provided certain criteria are met.